Mary Flaherty
Question:6 Miss Flaherty asked the Minister for Energy if, in view of investigations into the ESB and other semi-State companies, he has put in place a new code of ethics and practice for members of the board and officers of the ESB.
Ceisteanna — Questions. Oral Answers. - Code of Ethics.
A report has been prepared by the Department of Finance on the principles which should govern the relationship between Departments of State and the State bodies under their aegis, together with subsidiary and associated companies of the bodies in question. My colleague, the Minister for Finance, is examining the conclusions and recommendations of this report with a view to setting in place appropriate guidelines for State bodies based on their findings and this will, of course, include ESB.
I would like to ask the Minister whether issues which arose during a previous Question Time, about which he expressed concern, in relation to directors receiving fees as members of subsidiary bodies which were greatly in excess of their entitlement as board members will be covered? I know the Minister is in a difficult position but I would like to hear his view on the appropriateness of the finding that a family home had been purchased for a former chief executive of the ESB when he had a perfectly adequate home less than two miles away.
I would be concerned about allegations being made against a person outside this House——
This is public knowledge and is on record.
——or that a person would be referred to in such a manner that he or she might be identifiable.
It is a matter of public record. I am anxious to ascertain whether the Minister considers this as an appropriate use of funds of semi-State bodies, whether he will ensure that such an occurrence will not recur and that the matter will be considered in the context of the code of ethics?
The position in so far as I know it — obviously I would not have the close knowledge of it as has my colleague, the Minister for Energy — is that it was the practice in the ESB to appoint people as directors of subsidiary companies and to pay them fees that were very substantially in excess of the fees that were paid to members of the board of the ESB. The Minister for Energy has expressed his disapproval of that practice and asked that it be stopped, and I understand that it has stopped. As far as the question of buying houses for officials is concerned, the Minister for Energy became aware of that some months ago and queried the matter very strongly as to why it should happen and whether it was necessary. I do not know what the final outcome of his discussions with the ESB on that matter were but I am sure the House will agree that if it happened in the way outlined, it is most desirable that it would not happen again.
Would the Minister ensure that both of these matters are taken in hand or included in any future code of ethics that will be decided by the Government?
I am sure the guidelines which have been drawn up by a number of senior officials will cover instances of this kind which the Government would consider undesirable.
We must now proceed to other questions.